The world's express giant TNT launched a faster and more cost-efficient road distribution service today in China eying the potential demands spurred by China's 4-trillion-yuan stimulus package.

TNT's wholly-owned subsidiary TNT-Hoau will deliver the "Day-Definite Road Service," which targets corporate customers who need shipments arriving on time and in good condition.

The service costs about one-third of the air cargo rate and is faster than less-than-truckload road services which cannot guarantee arrival times.

All shipments will be bar-coded to allow customers to track and trace their shipments via the Internet and this also saves on supply chain costs. The day-definite trucks are equipped with Global Positioning System technology to enable real-time tracking of each truck throughout the process.

The new service will be offered between 115 depots covering the key economic areas of the Yangtze River Delta, the Bohai Economic Rim and the Pearl River Delta regions.

TNT-Hoau plans to increase the service to more than 260 depots by July 2009.

China's government has issued a 4-trillion-yuan stimulus package to boost domestic demand, a sizable proportion of which will be directed at the construction of transport infrastructure such as building new roads.

"We invest heavily in road and air services which enables us to shift our focus flexibly during the global financial crisis," said Michael Drake, Regional Managing Director of TNT North Asia.

"When the Chinese government decided to bolster domestic industries, we complement trusted less-than-truckload road services to boast our full-service offerings capability in the country," Drake said.

(Shanghai Daily February 17, 2009)